Buying a cup of coffee with a dollar bill represents the use of money as a:

A. medium of exchange.
B. unit of account.
C. store of value.
D. commodity.


Answer: A

Economics

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Suppose the actual and expected price levels in an economy are initially equal. However, the actual price level falls eventually due to a change in economic conditions. Which of the following will occur over the long run?

a. The economy will move rightward along the short-run aggregate supply curve. b. The economy will move leftward along the short-run aggregate supply curve. c. The short-run aggregate supply curve will shift to the right. d. The short-run aggregate supply curve will shift to the left. e. The short-run aggregate supply curve will become flatter.

Economics

An increase in price will result in an increase in supply.

a. true b. false

Economics

A permanent tax cut would likely ________ consumption spending ________ than would a tax rebate like the one issued in 2008

A) increase; more B) increase; less C) decrease; more D) decrease; less

Economics

National income is equal to ________.

A. rent + transfer payments + interest + wages B. gross investment - depreciation + indirect business taxes - net foreign income C. wages + rent + interest + profits and losses D. net investment + depreciation + net exports + net foreign income

Economics